Recommendations to luxury goods companies are offered, presenting different tactics to avoid negative consequences of luxury brand commoditisation and methods to manoeuvre well in business environments where industries are inevitably turning brands into commodities. These may result in the loss of luxury brands’ positioning and differentiation in the market.
This article explores the pitfalls that luxury companies face in today’s competitive luxury market and how counteracting strategies may lead to the commoditisation of luxury brands. guard their brands by adhering to its exclusivity and selectivity. The term is also lost when luxury brand managers are pressured between choosing to increase sales by reaching a wider range of customers where they lose sight of luxury’s unique values and opting to. To attain aspirational attributes, products not traditionally perceived as luxurious are associating themselves with luxury, which confuses its meaning. Today, the term luxury has become ubiquitous. Was preserving the status quo of producing 95 per cent of all watch components in-house a good idea? Should Journe scale up his business to compete with bigger competitors? Changes to the company were inevitable - it was not a matter of if, but when. Despite these accomplishments, Journe understood that the haute horology market had become increasingly competitive. The brand had reached new heights in 2014: the company’s first watch collection for ladies, “élégante,” was well-received by the media with stellar reviews, and the brand was also chosen to become the official watchmaker of France-China 50. Journe watches were distributed through an exclusive network of company-owned boutiques and third-party jewellery stores globally.
As collector’s items with the motto “Invenit et Fecit,” F.P. Journe was a well-respected brand in the industry, having received numerous prizes around the world. The private company had 125 employees, with a strictly limited production of 850 to 900 watches per year.
The company was founded in 1999 by François-Paul Journe, a Marseille-born French watchmaker who had represented the French school and artisanal know-how for over 30 years. Journe was a luxury haute horology manufacture with its headquarters in Geneva, Switzerland.
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